The Enforcement Directorate (ED) has arrested the two founders of the gaming platform WinZO, Saumya Singh Rathore and Paavan Nanda, for allegedly laundering money.
According to the ED, WinZO did not return around ₹43 crore to users after the government banned real-money gaming. Instead, the agency says the company moved the money around, hid it in different accounts, and even sent some funds abroad in suspicious ways.
During searches in Delhi, Bengaluru and Gurgaon, the ED froze assets worth over ₹500 crore. This includes bank accounts, fixed deposits, mutual funds and investments linked to WinZO and its founders.
Investigators also claim that WinZO used unfair systems inside the app. They say the company made players unknowingly compete against software “bots” instead of real people, which made users lose money more often.
The case is being investigated under the Prevention of Money Laundering Act (PMLA). After the arrests, the founders were taken to a Bengaluru court, and the ED was given custody for further questioning.
WinZO has said it is cooperating with authorities and following the law.
The arrests are part of a wider crackdown on online gaming companies, especially after stricter rules were introduced on real-money gaming in India.
Also Read: Bandhan Bank to sell nearly ₹7,000 cr of bad Loans
